LONDON -- Intertek Group (LSE: ITRK.L) has advanced 37% to 2,797 pence so far during 2012, making the share one of this year's best performers in the FTSE 100.
The company -- which provides quality and safety solutions for products, processes, and systems in more than 100 countries -- seems to have impressed investors with a series of positive statements.
During March, Intertek announced 2011 results that showed operating profits improve 24% to 281 million pounds with revenues rising 27% to 1,749 million pounds and a dividend up 20% to 33 pence per share. The group said the results included both strong organic and acquisitive growth with Moody International, an acquisition made in April 2011, performing ahead of expectations.
During May, Intertek's interim four-month statement revealed organic revenues had grown 9.5%, and total revenues increased 40%. Of the five divisions, only chemicals and pharma had a relatively disappointing performance with no significant new regulations to capitalize on. In addition to the continuing success of the Moody acquisition, there was strong organic growth in both commodities and commercial and electrical, with much of the demand coming from Asia.
Then in July, Intertek disclosed half-year results that showed profits up by 28% to 152 million pounds, revenues increasing 30% to 991 million pounds and a dividend rising 22%. Wolfhart Hauser, chief executive officer of Intertek, commented:
Our businesses continue to perform well. Within energy and commodities end-markets we are seeing very good demand for global quality services. Demand in consumer retail and commercial manufactured product industries was strong against a weaker prior year period. Customers continue to seek more testing support on the performance, sustainability and compliance of products and new technologies and are seeking greater 'total supply chain' quality solutions.
Intertek's next trading update will be published on Nov. 19, which may reveal further encouraging news that can impress investors.
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